Category: Interviews

  • PropTech remains invisible and indispensable

    PropTech remains invisible and indispensable

    Mr. Schwyter, you are one of the pioneers of the Swiss PropTech scene. How did your journey in the digital real estate market begin?
    After my time at Homegate, I asked myself how I wanted to use my knowledge further. The digitalization of the real estate industry was an obvious choice. Before the pandemic, however, hardly anyone was interested in this topic. It was Covid-19 that gave it a huge boost. From then on, digitalization was widely accepted and I found my place in the PropTech scene.

    What early experiences at Homegate still shape your view of PropTech today?
    Above all, the joy of experimenting and developing new approaches together. We wanted to create solutions that would advance the industry as a whole. This attitude is still with me today. Being open, working in an interdisciplinary way and testing boldly.

    How digital is the Swiss real estate industry really, if you leave out the marketing jargon?
    Pom’s Digital Real Estate Index has been below five on a scale of zero to ten for years. This clearly shows that the sector has a lot of potential for improvement. There is progress, but not a continuous digitalization push. Overall, we are more at the beginning of a professional digital transformation.

    Where does Switzerland stand in an international comparison? Pioneer or laggard?
    Switzerland has around 480 PropTech companies, which are small but qualitatively strong and diverse. Germany is significantly higher with more than 1,200 companies. We have areas where we are very good and others where there is potential for expansion. Overall, I would describe us as a solid, well-developed ecosystem.

    In your opinion, which PropTech segments are the most advanced?
    Platform solutions in the broad sense, i.e. not just marketplaces such as data platforms, service platforms and ecosystems. This is where we see the greatest professionalization and maturity.

    What kind of startups do you think will be the first to disappear and why?
    Startups that only cover one isolated process step and cannot be integrated. Real estate companies need solutions that combine several process steps or can be easily integrated into existing systems. Silo products will hardly be viable in the future, neither technically nor economically.

    Where do you see obstacles to digitalization in Swiss real estate companies?
    The industry is highly fragmented. A company with 20 or 30 employees is already considered large. Many have neither internal IT skills nor a budget for larger digitalization projects. This also means a lot of work for providers. Instead of five major customers, you have hundreds of small ones. This structure slows down digitalization.

    Which three megatrends will shape the PropTech landscape in the coming years and why?
    Clearly data, sustainability and artificial intelligence. Data is the basis for every well-founded decision. Sustainability is not possible without data, especially with ESG, and AI is a trend that is highly polarizing. However, the impact only comes when the data quality and organization are right.

    Are there technologies that have long been ready for the international market but have not yet arrived in Switzerland?
    No. Everything that is internationally relevant is generally available in Switzerland in high quality. The challenge lies not in the technology, but in its consistent application and integration.

    What does it take for administrations to become more open to technology and more courageous?
    A clear digitalization strategy, because without a target image, any tool introduction is pure actionism. Companies need to understand that digitalization is a cultural and transformation process and not an IT project. Employees need to be supported and motivated, especially in an environment with high staff turnover.

    How can you recognize the quality of a PropTech company?
    The team. The key question is: do the people have the skills, perseverance and openness to really implement an idea? Markets change, products change and only a strong team can support this change. The team is therefore more important than the idea.

    Which approaches manage to map the entire life cycle?
    Not individual all-in-one products, but integrated cycles. When condition analysis, refurbishment planning and facility management are linked via clean data flows, for example, a genuine life cycle is created. Integration is the key.

    In which phases do you see the greatest untapped potential?
    Clearly in the area of construction technology. How we build, what materials we use, how planning and construction processes work – major changes are imminent here. We are already much further ahead in terms of operations and marketing.

    Are the regulatory framework conditions more of a driver or a brake?
    Startups want fewer hurdles and some things have been improved. However, issues such as the tax treatment of founder shares remain complex. Overall, we should reduce regulation. Innovation does not come from new regulations, but from entrepreneurial freedom.

    What political steps would be necessary for the sector to digitalize faster?
    I am clearly in favour of less government. The real estate industry will digitize itself for economic reasons. If companies can win more mandates and improve quality with the same employees, they will use digital solutions. Without any new political requirements.

    What cultural and organizational stumbling blocks do you encounter most often?
    The misconception that digitalization is a tool issue. In reality, it’s about processes, collaboration and roles. Many underestimate the cultural change. High staff turnover also makes it difficult to establish a digital culture.

    Which developments will irreversibly change the industry?
    Anything that simplifies or automates repetitive tasks and thus creates productivity gains. Whether you call this digitalization or efficiency enhancement is irrelevant. AI is one component, but not the only one.

    If you had to found a new PropTech today, in which area would it be?
    Probably in the area of marketing, because there is a lot of creative potential there. At the same time, I would like to see existing solutions grow more strongly. We have enough good providers, we don’t necessarily need any more.

    Where will PropTech Switzerland be in 2030?
    PropTech will be indispensable, but not in the spotlight. It’s not “sexy” like climate or energy issues. PropTech doesn’t make the headlines, but it ensures that the industry functions digitally, data-based and efficiently. This is precisely why PropTech will play a central role in the long term.

  • Why the real estate industry is tackling digitalisation

    Why the real estate industry is tackling digitalisation

    Mr Caspar, pom is regarded as one of the leading consulting companies in the areas of digitalisation, transformation and sustainable property development. How would you describe your role within this ecosystem?
    At pom, we see ourselves as an intermediary between research, development and practice in the property industry. Our role is to recognise new topics at an early stage, classify trends and develop an understanding of what will move the industry in the future. We translate this knowledge into concrete use cases, recommendations and a basis for decision-making for our clients. In doing so, we help companies to separate the important from the unimportant and to focus specifically on those methods, technologies and data that actually create added value for their role in the property industry.

    Which topics are your customers currently most concerned with: data, processes, organisation or technology?
    There is no simple answer to this question. In recent years, the focus has been very much on technology. Many companies have introduced new systems and launched numerous digitalisation projects. This has certainly brought progress, but has also led to a certain amount of disillusionment. Projects were more time-consuming, more expensive and more complex than expected. This was often due to the fact that data and processes were underestimated. We are currently observing a clear shift away from purely technology-driven projects towards more data- and process-orientated approaches. The current AI hype is further reinforcing this development.

    pom emphasises that data is the foundation of modern property management. Where do Swiss companies stand today in terms of data readiness?
    Basically, Swiss property companies are not in a bad position. Most of them have sufficient data readiness to operate their core processes reliably and answer relevant stakeholder questions, but we see a need for development in automation in particular. This requires data to be structured, consistent and available company-wide. Data-intensive topics such as ESG show where the limits lie. Another important point is collaboration across company boundaries. The property industry has always been highly networked. Greater data readiness is crucial to making this collaboration more efficient, digital and automated in the future.

    What are the most common misconceptions about the digitalisation of property portfolios?
    The effort and complexity are often underestimated. In particular, the provision and preparation of the required data is estimated too optimistically. Although data is available, it is often not of the necessary quality or structure. This leads to delays, additional costs and extra work for the specialist departments that should actually be doing their core business. Another misconception is that digitalisation projects can be implemented “on the side”. Professional project structures and the corresponding expertise are often lacking. This has a negative impact on motivation, acceptance and ultimately the success of the project.

    Which technological developments will change the property sector the most in the next 5-10 years?
    Basically, we distinguish between two levels: the digitalisation of the property itself and the digitalisation of the companies that operate these properties. At building level, we are seeing major advances in the cloud, IoT and digital models. The digital mapping of properties, often referred to as the digital twin, is increasingly becoming the standard and enables new forms of automation, while at company level, development will be strongly characterised by AI and process digitalisation. A small number of core applications, combined with flexible low-code platforms, will make it possible to automate processes efficiently and across companies.

    Many companies are experimenting with AI. Where do you see realistic fields of application in the next 24 months?
    In the short term, there is great potential in analysing and evaluating documents and unstructured data. Content can be summarised, evaluated and created more quickly. Another important step is the integration of AI tools into everyday working life, for example as assistance solutions. The next step will be to increasingly link these systems with company-specific data. Reporting and analyses will also change: instead of fixed reports, information will be compiled according to the situation and needs.

    What risks do you see in the use of AI in the property industry?
    We see the biggest challenges less in the regulatory area and more at a cultural and technological level. Many companies do not yet have the necessary skills and structures in place to deal with data and technology. In addition, the Swiss market is highly fragmented and heterogeneous, which makes it difficult to introduce standardised solutions. The property industry is project-orientated and has little serial logic. This further slows down the introduction of new technologies.

    Rate of adoption instead of technology: what are the biggest cultural hurdles?
    A key hurdle is that digitalisation is not yet anchored as a strategic topic in many companies. A lack of expertise, unclear responsibilities and the expectation of implementing digitalisation “on the side” are slowing down implementation. In addition, there is often a lack of willingness to consistently scrutinise and change existing ways of working.

    How is digitalisation changing roles in real estate companies?
    Digital skills will be part of the basic qualification of many roles in the future. The focus will be less on a deep understanding of technology and more on secure user knowledge. At the same time, new roles are emerging, for example for the management of digitalisation projects and digital platforms. These functions ensure that systems are used, developed and operated sensibly.
    This allows asset, property and facility managers to continue to focus on their core business.

    What makes a digitally mature company?
    A digitally mature company anchors digitalisation, technology and data at the highest management level. There is a clear strategic stance, defined goals and responsibilities. Digitalisation is not delegated to IT, but is seen as an entrepreneurial task.
    Such a company also has the necessary roles, processes and expertise to continuously develop digital solutions and adapt them to changing conditions.

    ESG and PropTech are growing together. Which technologies are already creating real impact?
    ESG is a strongly data-driven topic. There are now functioning solutions along the entire data chain, from measurement to key figures. Smart meters, automated analyses of energy bills and the consolidation of data across several buildings are technically feasible. The challenge lies less in individual components and more in end-to-end integration and automation within companies. We do not yet see a comprehensive all-in-one solution.

    Where do you see the biggest gaps between requirements and reality on the market?
    The biggest gaps arise where requirements are only implemented selectively without considering the entire value chain. Data-driven topics in particular show that technical possibilities are available, but organisational and structural requirements are often lacking.

    How do you assess the maturity of the Swiss PropTech market in an international comparison?
    Switzerland has a very lively and innovative PropTech scene. Many solutions are internationally successful. The biggest challenge lies in scalability due to the size of the market and the federal structures. Overall, however, the level of maturity is high and competitive.

    Which PropTech areas are underdeveloped and which are overheated?
    The ESG sector is currently very overheated. There are a large number of solutions, which leads to a certain disillusionment. In international comparison, the consistent use of BIM across the entire property life cycle is particularly underdeveloped. Other countries are further ahead here, especially when it comes to institutional investors.

    Where do you see potential for partnerships between established companies and start-ups?
    Partnerships offer great potential, but are challenging. Established companies think long-term, start-ups are dynamic and innovation-driven. Cooperations are successful where there is mutual understanding and clear expectations are defined, be it in projects, partnerships or targeted funding models.

    Which developments currently surprise you in particular, both positive and negative?
    The AI hype is both positive and challenging. Positive because it promotes innovation, efficiency and new ways of thinking. Negative because expectations are often overestimated in the short term. Sustainable success requires an in-depth examination of data, processes and governance.

    If you could change one thing in the industry immediately, what would it be?
    I would like to see more consistency across the entire property life cycle.
    The project-based, highly individualised way of working makes it difficult to use scalable digital solutions. Approaches such as prefabrication and standardised construction methods could help to enable technological leaps without losing quality and design freedom.

    What drives you personally to drive forward the transformation of the industry?
    I am motivated by change, new projects and the opportunity to develop things further.
    Property is a particularly exciting field because it shapes our daily lives, from living to working. I find shaping digitalisation and transformation in this context to be meaningful and highly relevant.

  • The future of location promotion in the canton of Zurich

    The future of location promotion in the canton of Zurich

    Together with Markus Müller, you have been co-heading the location promotion of the Canton of Zurich for over 15 months.
    What insights have you gained?
    Zurich stands out within Switzerland due to its economic size. This also means that we are not only heavily involved in cantonal issues, but are also active on the national and, in some cases, international stage. For example, we promote Switzerland as an AI location or share our findings on AI applications in the economy with international partners.

    At the same time, I find the close cooperation between business, science and administration as well as politics to be expedient when it comes to creating sustainably attractive framework conditions.

    Could you give us a brief overview of the current priorities of location promotion in the Canton of Zurich?
    The central focal points are:

    As just mentioned, the development of attractive, long-term location factors. Through close dialog with business and science, we identify trends at an early stage and provide targeted impetus for location development.

    Promoting innovation and strengthening our key sectors of finance, ICT, life science, food, clean and high-tech.

    Maintaining and strengthening the diversity of the industry structure. In this context, we also support companies that want to locate here – from the search for a location to obtaining permits.

    Our projects, programs and initiatives are based on these three pillars.

    What are the long-term visions of the cantonal location promotion department with regard to location development?
    The attractiveness of a business location depends on a number of different location factors. These range from target group-friendly regulations and digital government services to strong innovative power and the sustainable design of economic areas.we are pursuing the goal of being an attractive, leading and future-oriented innovation and business location with international appeal for companies and the population.

    Zurich is one of the most expensive places to live in the world. The high real estate prices and rents are also becoming an increasing burden for companies. What can location promotion do about this?
    We are committed at various levels not only to the attractiveness and prosperity of the economic area, but also to a high-quality and excellent quality of life. In this respect, the availability of living space also plays a role. One concrete application can be found, for example, in our Innovation Sandbox for artificial intelligence. In the current phase, we are supporting the use of AI in planning applications. We hope that the results will help us to find ways of reducing the building backlog and streamlining the building permit process.

    Housing subsidies are also located at official level. It promotes the provision of affordable rental apartments with attractive loans.

    The ageing population is affecting the real estate sector and the labor market. What significance does this fact have for the canton of Zurich and how can you respond to it?
    The topic of demographic shifts and the widening labor market gap has been on our minds for some time at various levels. Over the next few years, many experienced workers will retire – this will increase the competition for talent.

    On the one hand, we are working on various projects in the area of recruiting and retaining skilled workers and labor market participation. At the same time, we are currently developing new overarching approaches to demographics that will have a longer-term impact. One thing is clear: tackling the challenge of demography must be approached from a systemic perspective, meaning that many parties and stakeholders need to be brought to the table.

    How do you see the role of the canton in the Greater Zurich Area economic region?
    The Greater Zurich Area is one of the most innovative business locations in Europe – and the canton of Zurich plays a central role in this. As a leading innovation location, we create the framework conditions that companies need to develop successfully. Ultimately, the other cantons within the Greater Zurich Area also benefit from our strong position.

    As the economic engine of Switzerland, the Canton of Zurich is also the largest provider of funds for the Greater Zurich Area as a business location. At the same time, our Chief Executive Officer, Government Councillor Walker Späh, is President of the Board of Trustees of the Greater Zurich Area Business Location. The Canton of Zurich is also actively represented in the Greater Zurich Area economic region by the two cities of Winterthur and Zurich. This allows us to optimally represent our interests and coordinate the activities of the Greater Zurich Area as a business location with our own.

    How does the cooperation with other cantons within the Greater Zurich Area business location work?
    What joint projects are currently underway?
    Cooperation within the organization of the Greater Zurich Area business location focuses primarily on issues relating to relocation. We work very closely with other cantons in various other constellations and committees. For example, in the Zurich metropolitan area, but also on a smaller spatial level, such as in the Limmat Valley. However, not all cantons are always members of the Greater Zurich Area business location.

    Current cooperation projects include the 2nd phase of the Innovation Sandbox for Artificial Intelligence, which also includes the aforementioned building permit project, and the repositioning of the Limmatstadt regional location promotion program, in which we are thinking beyond the cantonal borders in functional areas and looking for solutions.

  • Future-proof location for business and innovation

    Future-proof location for business and innovation

    Mrs Thalmann, you have been the mayor of the canton of Zug since 2023 and head the Department of Economic Affairs. It houses ten offices from the fields of business, education and social insurance and works with third-party partners from the fields of business and vocational training. How do you see the economic development of the Canton of Zug over the next five years?
    Very well. The financial situation of the Canton of Zug continues to develop positively and the canton has a high level of equity. The 2025 budget anticipates an income surplus of CHF 226 million. The very good earnings situation allows the canton to maintain its attractiveness as a business location. Such surpluses consolidate its already very good position. The canton of Zug can continue to position itself as a financially sound and attractive location for companies and a highly qualified workforce.
    The canton of Zug wants to maintain its position as an economically successful and attractive business location and residential canton. The political debate is ongoing. Large sums will be allocated in the 2025 budget and in the planning years 2026-2028 for contributions to supplementary childcare for pre-school and school-age children, the increase in the cantonal contribution per pupil to recognised public schools and the promotion of research into blockchain development. The increase in the canton’s share of inpatient healthcare costs will also be taken into account. The “Added value for all” package, which provides for tax relief for the people of Zug, businesses and the economy, will result in lower revenue.

    These measures, which the cantonal government intends to implement specifically for the benefit of the people of Zug and the economy, are possible thanks to the high revenue surpluses in previous years and the very solid equity capital. The expected additional income from the introduction of the OECD minimum tax is to be returned in full to the population and the economy.

    What is the Canton of Zug doing to remain an attractive location for companies in the future?
    It is the overall package of several factors that is decisive. The basic principles are business friendliness, service-orientation and a culture of innovation.

    The canton has significant clusters in various sectors and is an attractive location for established and up-and-coming local and international companies. A dense network of service providers, suppliers and private institutions support value-enhancing growth.
    Economic support for local companies is a top priority. The authorities support companies in their long-term growth. To this end, they offer access to the Zug business network. The lines of communication are short; concerns are dealt with quickly and in a solution-orientated manner.

    Which sectors are the focus of location promotion and how does the canton of Zug support their development?
    The canton of Zug has been pursuing a good framework policy for all sectors for decades and wants to maintain its attractiveness. Various industries have formed clusters; the industry groups are broadly diversified: Wholesale incl. consumer goods and commodities trading; high-tech / deep-tech industry; life science including pharma / biotech / medtech; finance with asset management / private equity / family offices; ICT including fintech and blockchain; headquarters as well as global procurement & supply chain functions.

    The focus is on the growth of the resident companies. In addition, new companies, especially value-added intensive companies, are moving here. I am delighted when companies from the second sector prosper in our canton. V-Zug, Siemens and Roche are just a few examples of very high value-added companies.

    The Zug economic region is larger than the canton of Zug. Access to a talent pool of potential specialists is sometimes an important reason for choosing Zug as a business location. There is no individual company promotion policy or cluster policy. What counts is a good economic environment with attractive taxes, well-trained skilled labour, a functioning infrastructure with short administrative distances. Then there is the proximity to the ETH, university, etc. and the regional universities of applied sciences, the quality of life in terms of landscape and culture, the accessibility thanks to the location in the heart of Europe with the connection to the airport in Zurich.

    How important is the tax policy of the Canton of Zug for attracting companies?
    Attractive taxes are an argument in favour of choosing a location; they open the door to the shortlist. Ultimately, it is the overall package of locational advantages that makes the difference. The Canton of Zug has a long-term tax and financial policy, high net assets and an attractive tax environment. It also offers planning and legal certainty.

    How does the Department of Economic Affairs support companies in the canton of Zug?
    80 per cent of the energy is used for economic development. Companies should feel at home here. The team at the Business Contact Centre is very service-minded and is in constant contact with various stakeholders in order to maintain business-friendly conditions for local companies. They see themselves as partners and promote Zug as a business location, are networked and in dialogue with local companies, business associations, organisations, etc. They are committed to the concerns of Zug’s entrepreneurs; their satisfaction is the goal.

    The property market in Zug is tight. What steps is the canton taking to create more living space?
    Finding living space is a major issue that also concerns the Zug government. The canton of Zug has just finalised a “Housing Policy Strategy 2030” with 19 measures that will be successively implemented. The main points are: more flats, more affordable flats and more flats for the local population. One of the aims is to increase the number of vacant flats to allow more movement. The resulting measures are Simplified and more flexible building regulations, such as adding storeys, superstructures or relaxing the requirements for high-rise buildings, should enable the construction of more living space. Existing building permit processes are to be reviewed and examined for simplification, acceleration and optimisation. By strengthening and simplifying the Housing Promotion Act, non-profit property developers should be able to obtain loans more easily and subject aid for needy households should be optimised.

    The Government Council is prepared to initiate the corresponding amendments to the Planning and Construction Act and the Housing Promotion Act. In principle, it wants to achieve the housing policy goals with voluntary measures. Financial incentives should lead to a larger, more readily available and affordable housing supply.

    What role does the canton play in promoting sustainable construction and energy-efficient property projects?
    On the one hand, the canton of Zug fortunately has investors who are taking on a pioneering role with regard to sustainable construction and energy-efficient projects. Examples include the Suurstoffi and Papieri sites and the Techcluster in Zug.

    On the other hand, the cantonal energy law comes into play: when heating systems are replaced, at least 20 per cent of the heating requirement must be covered by renewable energies or energy efficiency must be increased to the same extent. In order to cushion the financial consequences for building owners, the cantonal energy promotion programme will provide generous subsidies for the replacement of heating systems and thermal insulation until 2032.

    As mayor, you are also active in regional and national politics. What challenges do you see for the coming years?
    The challenge is to provide childcare to supplement family life in line with demand. Other tasks include finding answers to demographic developments and dealing with the increasing numbers of asylum seekers – the people of Zug are doing a great deal to integrate; the canton of Zug promotes integration, the loss of tax attractiveness (STAF, minimum taxation) and a clarified relationship between Switzerland and the EU with regard to access to the market.

    Which upcoming property projects will influence the Zug economic region?
    The dynamic economic development of our canton has been and will continue to be strongly fuelled by the development of attractive sites for working and living. The focus on sustainability is particularly important here. Sites such as Suurstoffi (Rotkreuz), Papieri (Cham) and Techcluster/V-Zug (Zug) are already well-known projects with nationwide appeal. Upcoming major projects such as the LG site (Landis & Gyr) (Zug) or Unterfeld (Baar/Zug) as well as Hinterberg/Städtlerallmend (Cham/Steinhausen) will continue this sustainable development.

    The canton of Zug is investing CHF 40 million in the establishment of the Institute for Blockchain Research. What do you hope to gain from this?
    We believe that blockchain technology has the potential to change many areas of our lives and we want to be at the forefront of this development. With Blockchain Zug, we are launching an innovative flagship project with international appeal. This educational project will further strengthen Zug as a business location, also against the backdrop of the OECD minimum taxation introduced on 1 January 2024. This is a measure that will help to secure the competitive position of the canton of Zug as a successful residential and business location. The canton wants to bring together the areas of research, education and business and promote innovation. The aim of the initiative supported by the canton is to make Zug a leading global centre for blockchain research.

    Final question: Why should companies come to Zug?
    Zug has proven that it is a very attractive place to live and do business. Its success is based on a long-term development strategy. Decisive factors for choosing Zug as a business location are its business friendliness, the availability of skilled labour, decades of stability, the high quality of life and the short distances between Zug’s authorities, which work quickly and efficiently.

  • “Thun should develop without losing the city’s identity”

    “Thun should develop without losing the city’s identity”

    Mr Lanz, you have been Mayor of Thun since 2011. What have been your greatest successes and failures during this time?
    During my term of office as Mayor of Thun since 2011, we have achieved many successes. Thun has generally developed very well, which is reflected in rising tax revenues, above-average income growth and record overnight stays, for example. Our town is characterised by a very high quality of life. However, it is difficult to name specific high and low points, as politics is the result of many joint endeavours. The well-being of the citizens is at the centre of my concerns and I believe that they enjoy living in Thun.

    How is the town of Thun doing economically?
    Thun’s economic situation has changed over the years; we were once heavily dependent on military operations and the army. Today, we have a diversified SME economy, with 96% of businesses employing fewer than 50 people. This ensures a robust, constant and stable economy without major fluctuations. In terms of tourism, we are at an all-time record, which shows that Thun is very popular with tourists.

    What are the city’s economic drivers and how dependent is the city on them?
    In Thun, we are fortunately no longer dependent on individual economic drivers. Large employers such as Thun Hospital or construction companies such as Frutiger AG are important, but their performance does not influence the entire economic area. Our strength lies in our broad diversification, with a particular focus on mechanical engineering. Even if individual prominent companies relocate, the impact on our economy is moderate and we are well able to compensate for such changes.

    How has the city of Thun developed in recent years?
    Thun has developed very positively in recent years, which is also reflected in its growing tax capacity. We have one of the lowest vacancy rates in Switzerland, which on the one hand emphasises our attractiveness, but on the other hand also poses challenges, especially for young families looking for living space. To counteract this, we are focussing on various area developments. We also emphasise the recreational qualities of our city on the water and in the mountains, for example through the Lake Thun Games or the Thun Water Magic.

    What are Thun’s advantages as a business location?
    One of Thun’s key advantages for companies is its attractiveness for skilled workers, as they are drawn by the outstanding leisure facilities and its location on the water. This attractive environment makes it easier for companies to attract and retain qualified employees. We endeavour to create optimal framework conditions, including short distances to politics and effective business development. This creates a business environment that contributes to prosperity.

    How does the city administration co-operate with local, regional and cantonal business associations to promote the location?
    We maintain close relationships both in the local and regional economic area as well as with the cantonal economic development organisation. Constant dialogue with the business associations is very important to us. If concerns arise, we can contribute our expertise or request support. Overall, this co-operation works extremely well.

    What have been the most important urban development projects in recent years?
    A central project in Thun’s urban development is the recently approved revision of the entire local planning, which includes the basic building regulations and has spanned several legislative periods. In addition to local planning, we are placing particular emphasis on site developments, with the railway station and the former military site in Thun North considered to be premium development priorities. A new S-Bahn station is also planned in the Thun North area. The Thun development area is responsible for regional planning, whereby the cantonal structure plan is broken down to the individual municipalities. This regional planning organisation coordinates settlement and transport planning to ensure that everything is developed in a coordinated and not contradictory manner.

    What are the city’s long-term goals in terms of economic growth and location promotion?
    We certainly need a certain amount of economic growth. I am convinced that this growth will materialise if we succeed in offering the local economy good framework conditions. The greatest opportunity for us are the companies that are already here. We want to support them with development opportunities, which will also ensure that growth is sustainable. I realise that growth must always be compatible with the population, otherwise there will be resistance, which can sometimes turn into blockades.

    Have you experienced such resistance from the population in the last 15 years?
    In the last 15 years, there has of course been resistance from the population to certain projects. As politicians, it is our job to anticipate such resistance and convince the population. By providing transparent information and taking concerns into account, we have been able to successfully overcome every vote on development projects to date.

    Let’s move on to property. What are currently the city’s most important property projects
    ?

    Thun is currently focussing on several real estate projects. One of these projects is “Hoffmatte”, which has been held up by legal delays despite a favourable referendum. Another key project is “Freistatt”, a new housing development by a housing cooperative, for which a referendum is planned soon. In addition, the “Siegenthalergut” will close a gap in the housing estate and transform it into a new neighbourhood. The city attaches great importance to informing the population transparently about such projects and convincing them of the added value.

    Do you still have sites available for the future?
    The city of Thun only has a few sites available for future development. On the one hand, there is potential at the “Siegenthalergut” and opposite the football arena in Thun Süd, where a work zone is planned. I see the greatest development potential in the “Thun North” area, which offers good transport links, a planned railway station and open spaces. However, these areas are army conversion sites, which means that their civilian use harbours a certain degree of complexity.

    How do you see the development of the property market in Thun?
    The property market in Thun has been characterised by rising prices in the past, although a phase of consolidation is currently being observed. Thun is particularly sought after due to its attractiveness, which leads to an illiquid property market with few available and affordable properties. To counteract this, the city is endeavouring to provide adequate living space for all sections of the population, including young families and older people, through various site developments.

    Is there currently a housing shortage in Thun? If so, how are you dealing with it?
    There are currently housing challenges in Thun. Two main approaches to tackling this problem are site development and building regulations. The local planning revision will enable increased internal development so that more can be built than before. This should incentivise landowners to make better use of their property and thus reduce the housing shortage.

    There is a shortage of skilled labour throughout Switzerland. What is the situation in Thun?
    The shortage of skilled labour is just as prevalent in Thun as it is throughout the country. The city is focussing on creating an attractive environment for potential skilled workers and their families, as this increases the likelihood that they will decide to work in Thun. We know from feedback from companies that an attractive residential and living environment is very important for attracting skilled labour.

    What is your vision for the future development of the city?
    Thun has developed very positively, which is why we don’t want to make any fundamental changes. My main aim is to ensure that residents enjoy living in Thun. We are paying particular attention to the development of Thun North, inner city development, various site developments and the associated creation of open and green spaces. Despite growth, we are endeavouring to preserve Thun’s characteristic qualities and not expand at all costs. For example, we have built a ring of multi-storey car parks around the city centre to reduce traffic in the city centre and improve the quality of life. We always try to create win-win situations and not play individual measures off against each other.

  • “A big city with small-town charm”

    “A big city with small-town charm”

    Where do you currently see the biggest challenges for the city?
    Winterthur is experiencing strong growth. This brings opportunities, but also challenges. More and more people want to move to Winterthur. This requires a greater number of available jobs, because short commutes mean quality of life. In addition, we have to provide more transport and educational infrastructure. This entails costs – even if we generate more tax revenue due to the growing number of residents. Nevertheless, larger investments are necessary to absorb the growth. With “Winterthur 2040” we have defined where densification is to take place. We expect around 135,000 residents by 2040.


    You have already mentioned it: the city of Winterthur currently has over 120,000 inhabitants. Last year you recorded the strongest population growth in decades. Why is that?

    Winterthur is simply a great city! We are excellently located. We offer a lot of green spaces, a high quality of life and a wide range of cultural activities. Our educational institutions also attract young people in particular. This brings well-trained professionals to the regional labour market. Of course, we also benefit from our affiliation with the Zurich economic region.
    And we are a modern technology city, which is interesting for companies. In short: Winterthur is a big city that offers everything, but still retains its small-town charm.

    How is the city’s housing market doing in view of the sharp rise in the number of inhabitants?
    Like all cities, we are struggling with a very low vacancy rate. But we still have a few municipal and some private building reserves to fall back on. The current building and zoning regulations still allow for a lot. There is a lot of building going on, as we can see from the number of building permits. Basically, we are striving for a well-mixed city. That’s why we try to offer both affordable housing and housing for higher incomes. In my opinion, however, the housing market should not be regulated by the city, it should function as independently as possible.


    You have set up the Smart City office. What does it deal with and how does it work?

    We were the first city in Switzerland to have a Smart City strategy at the city council level. The Smart City uses social and technological innovations in a targeted way to ensure quality of life, conserve resources and promote sustainable development. In other words, it is about using modern technologies to simplify everyday life for the population and to make the city well connected. For this purpose, we have founded the Smart City Winterthur office. In addition, the city of Winterthur is positioning itself as a Living Lab (WinLab), a real laboratory or test city, in which social and technological innovations for the benefit of sustainable urban development can be tried out, systematically tested and, if successful, scaled up. Partners from research and development, business and civil society are invited to actively participate.


    Sustainability is an important keyword in this context.
    True. Researchers from a wide range of disciplines agree that the city of the future must be a sustainable city. This means that the city must be designed in such a way that it can adapt to changing conditions. This concerns not only the “hardware” such as infrastructure, buildings and open spaces, but also the “software”, i.e. the social and economic structures. A sustainable city is therefore economically successful, ecologically compatible, socially stable and thus: resilient. The sustainable Winterthur should therefore also be an ecological city, in the sense of quality of life for its inhabitants. This includes as few emissions as possible, sufficient green spaces, open space and flexible and diverse mobility. With regard to social resilience, it is important for us to strengthen networks and address existing disadvantages.


    What has been done specifically in the area of digital transformation of the city administration and what is still planned?
    In order to be able to approach the digital transformation in a targeted and holistic manner, the city is currently developing a digitalisation strategy. This is geared to the needs of the various stakeholders and is based on the available means and resources. Our goal is to create a faster and as low-threshold contact to the population as possible. Currently, the city offers over 90 e-services that can be accessed via a central portal. We also want to make our internal work processes even more efficient. The highest priority is not only ease of use, but also data protection and data security. The greatest challenge, however, is and remains the speed at which digitalisation is advancing. It is important to keep pace here. We have not yet reached our goal, but we are well on our way.


    In 2017 you initiated the merger of the associations Winterthur Tourism and Location Promotion Winterthur Region. The result is the new organisation House of Winterthur. What is your conclusion some six years later?
    With House of Winterthur we have founded an association that allows us to conduct integrated location marketing. At the time, we were the first city to try this. We want to do marketing for the city and the region of Winterthur from a single source, so to speak, and generate a higher added value. We got off to a good start with a very broad sponsorship. The sponsorship is very broad with the canton, municipalities, companies, hotels, restaurants, cultural institutions and the city; meeting the different demands was a very big challenge. We certainly haven’t done everything optimally here. We have had a new director for a year and a half and are in the process of reorganising the board. I am still convinced of the idea, but we still have to optimise and adjust it.

  • Andreas Zettel: “The new Spatial Planning Act requires active management of development priorities”

    Andreas Zettel: “The new Spatial Planning Act requires active management of development priorities”

    Mr Zettel, the canton of Lucerne, all Lucerne municipalities and network partners from business and industry are making a financial and non-material commitment to Lucerne as a growing business and residential location. How do you rate their success?
    If we look back over the last few years, we can see the dynamic development of Lucerne as a business location. Between 2012 and 2017, the number of companies and jobs grew at an above-average rate compared to the rest of Switzerland. Over 2,000 companies and more than 15,000 jobs were created across the canton during this period. That is a national record. The joint efforts have therefore paid off. Last year, the number of companies again increased by over three per cent.

    What makes the canton of Lucerne particularly attractive?
    I would emphasise the attractive combination of various location factors. Ultimately, this is what defines the quality of the location. In addition to the coherent hard factors such as low taxes, availability of labour and good accessibility, the canton of Lucerne is also scenically attractive and culturally exciting. Many tourists visit the Lucerne region every year. The tourist offers
    the local population also benefits directly from the tourist offers.

    Back to the hard facts. Are there still areas available for companies to set up and develop?
    The market has indeed changed considerably in recent years. The availability of building plots and developed workspaces is a key challenge for the future. The new Spatial Planning Act sets tight limits. Zoning is only possible under certain conditions. As a result, the focus in future will clearly be on inward development and better utilisation of land. This also affects companies to a large extent, especially local SMEs. The property industry in particular is called upon to create new, attractive and affordable offers for these businesses.

    Where do you see local opportunities for new businesses?
    Attractive new areas are being created in the new city centres of Lucerne South and Lucerne North. In the centre of the city of Lucerne, development is limited in terms of space, i.e. development here is taking place within the framework of site developments, which have to fill the last gaps between buildings and integrate into the existing city. From a regional perspective, this means that the city of Lucerne is expanding as a functional area and new, attractive city centres are emerging in the surrounding municipalities, which are excellently developed and can offer a new urban quality. Personally, I am a little concerned about the purely employment zones, as these have often been put to other uses in the course of inner-city development without any replacement. These areas are then lacking in commercial space.

    So these areas are a scarce commodity?
    Well, this impression can indeed arise. However, a closer look reveals that there are still a considerable number of plots of land in the canton of Lucerne that are zoned but not yet developed. The question here is whether the landowners want to develop at all. We are noticing a certain tendency towards building land hoarding, which is clearly not in our interests. However, sometimes there is not only a lack of will, but also simply a lack of knowledge about how these areas could be developed. The prime sites in particular need to be developed very cleverly and sustainably so that the next generation can also benefit from them to the maximum.

    What is the development strategy in the canton of Lucerne?
    Twelve so-called cantonal development centres (ESPs for short) have been defined in the current structure plan. These are large-scale employment areas in well-developed locations. The aim is to achieve qualitative development, whereby the coordination of settlement and transport also plays an important role. The ESPs are a central element of Lucerne’s location policy and an important instrument of joint economic promotion by the canton and municipalities.

    Where are these development centres located?
    Due to their economic potential, they are orientated towards the main transport axes of the canton of Lucerne. They are mainly located in areas with good transport links, both by car and by public transport.

    What is the status of these development centres?
    Very differently. While the Lucerne South and Lucerne North areas in the Lucerne city region, for example, are relatively advanced and are already being implemented, there is considerable potential for catching up in the two regional centres of Hochdorf and Willisau, for example. It is these areas that will increasingly become the focus of investors and developers in the coming years.

    Where can I find out more about the individual development centres?
    Investors and interested companies can get in touch with us, as we have a good overview of the status of these areas and know all the contacts. In addition to the local municipalities, the four regional development organisations in the canton of Lucerne are also key to the development of these ESPs. These are LuzernPlus, Sursee-Mittelland, Region Luzern West and Idee Seetal. The positive interaction between the state and the economy is a core element of our joint economic policy. We want to further improve this. ■